Premium ArticleDid You Buy On The Dip?

Equity markets kicked off last week on a very sour note after worse-than-expected China GDP data opened up the gates for the bears on Wall Street. To top it off, extreme selling pressures in the gold market dented the bulls’ confidence altogether, prompting many to jump ship to Treasuries for much of the trading week. Nonetheless, bargain buyers stepped in once again following the short-lived correction, and the S&P 500 Index managed to close out the week right above a key support at the 1,540 level [see Free 7 Simple & Cheap All- ETF Model Portfolios].

Actionable ETF Trade Ideas

Our picks from Monday’s Insider posted very good performance results, even after equity markets endured a choppy trading week. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 50 all-ETF model portfolios].

This recommendation was well timed, although bargain buying on Friday ended up leeching away a lot of the profit generated here earlier in the week. IYT failed to summit the $110 level as anticipated and profit taking pressures dominated this ETF for almost the entire week – right from the opening bell on Monday. Despite rallying higher on Friday, this ETF still finished the week in red territory, resulting in a small profit for us.

Trade #2 Long OFF: Up 1.7%

This defensive recommendation wasn’t as profitable as we had hoped for, seeing as how the correction on Wall Street was yet again very short-lived. OFF rallied early in the week as earnings jitters deteriorated confidence; however, the pullback in the equity market ended up inviting more bargain buyers towards the end of the week. Despite its lackluster performance on Thursday and Friday, this trade still ended up in green territory as the closing bell rang.

Trade #3 Long SPLV: Up 0.5%

This trade panned out as we had anticipated after the bulls returned to the “safer” corners of the equity market following Monday’s rather steep sell-off. SPLV endured a choppy week of back-and-forth trading right along its support level; bullish pressures swooped in Friday and bolstered this ETF near its opening price on Monday morning, leaving us with a small profit.

Selling pressures permeated all corners of the global equity market this week as evidenced by the negative performances across our regional strategies. Year-to-date, the best performing strategy remains the Global Titans Portfolio while the laggard is still the Africa-Centric Portfolio.

An overwhelming majority of our themed strategies turned in sour performances this week thanks to selling pressures on Wall Street and across the commodities market. Year-to-date, the Baby Boomers Portfolio remains at the top of the performance list while the GLD-Free Gold Bug Portfolio is by far the worst performer with double-digit losses.

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